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Scientific Games

DB:TJW
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TJW
DB
$551M
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The last earnings update was 47 days ago. More info.


Add to Portfolio Compare Print
  • Scientific Games has significant price volatility in the past 3 months.
TJW Share Price and Events
7 Day Returns
-33.2%
DB:TJW
-6.8%
DE Hospitality
-0.6%
DE Market
1 Year Returns
-69.8%
DB:TJW
-48.1%
DE Hospitality
-20.9%
DE Market
TJW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Scientific Games (TJW) -33.2% -59.3% -75.7% -69.8% -73.9% -52%
DE Hospitality -6.8% -31.3% -57.6% -48.1% -63.2% -70.6%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • TJW underperformed the Hospitality industry which returned -48.1% over the past year.
  • TJW underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
TJW
Industry
5yr Volatility vs Market

Value

 Is Scientific Games undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Scientific Games to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Scientific Games.

DB:TJW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TJW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 21%) (1607.02%))
7.506
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:TJW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Scientific Games is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:TJW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 436.80 Analyst x6 395.33
2021 450.39 Analyst x7 368.93
2022 458.75 Est @ 1.86% 340.10
2023 464.18 Est @ 1.18% 311.45
2024 467.48 Est @ 0.71% 283.89
2025 469.26 Est @ 0.38% 257.91
2026 469.96 Est @ 0.15% 233.78
2027 469.90 Est @ -0.01% 211.56
2028 469.31 Est @ -0.13% 191.23
2029 468.35 Est @ -0.2% 172.72
Present value of next 10 years cash flows $2,766.00
DB:TJW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $468.35 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$4,287.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,287.91 ÷ (1 + 10.49%)10
$1,581.31
DB:TJW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,766.00 + $1,581.31
$4,347.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,347.31 / 93.87
$46.31
DB:TJW Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TJW represents 0.93424x of NasdaqGS:SGMS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93424x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 46.31 x 0.93424
€43.27
Value per share (EUR) From above. €43.27
Current discount Discount to share price of €5.48
= -1 x (€5.48 - €43.27) / €43.27
87.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Scientific Games is available for.
Intrinsic value
>50%
Share price is €5.48 vs Future cash flow value of €43.27
Current Discount Checks
For Scientific Games to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Scientific Games's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Scientific Games's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Scientific Games's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Scientific Games's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TJW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.40
NasdaqGS:SGMS Share Price ** NasdaqGS (2020-04-03) in USD $5.87
Germany Hospitality Industry PE Ratio Median Figure of 9 Publicly-Listed Hospitality Companies 21.1x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Scientific Games.

DB:TJW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SGMS Share Price ÷ EPS (both in USD)

= 5.87 ÷ -1.40

-4.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scientific Games is loss making, we can't compare its value to the DE Hospitality industry average.
  • Scientific Games is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Scientific Games's expected growth come at a high price?
Raw Data
DB:TJW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
101.3%per year
Europe Hospitality Industry PEG Ratio Median Figure of 63 Publicly-Listed Hospitality Companies 0.96x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Scientific Games, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Scientific Games's assets?
Raw Data
DB:TJW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-23.53
NasdaqGS:SGMS Share Price * NasdaqGS (2020-04-03) in USD $5.87
Germany Hospitality Industry PB Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 1.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:TJW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SGMS Share Price ÷ Book Value per Share (both in USD)

= 5.87 ÷ -23.53

-0.25x

* Primary Listing of Scientific Games.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scientific Games has negative assets, we can't compare the value of its assets to the DE Hospitality industry average.
X
Value checks
We assess Scientific Games's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Scientific Games has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Scientific Games expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
101.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Scientific Games expected to grow at an attractive rate?
  • Scientific Games's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Scientific Games's earnings growth is expected to exceed the Germany market average.
  • Scientific Games's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TJW Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TJW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 101.3%
DB:TJW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.2%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 28.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TJW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TJW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,360 136 1
2021-12-31 3,513 768 114 10
2020-12-31 3,385 688 61 11
2020-04-05
DB:TJW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,400 546 -130
2019-09-30 3,422 393 120
2019-06-30 3,388 476 -245
2019-03-31 3,388 483 -174
2018-12-31 3,363 346 -352
2018-09-30 3,301 474 -602
2018-06-30 3,249 360 -310
2018-03-31 3,170 426 -344
2017-12-31 3,084 507 -242
2017-09-30 3,013 465 -310
2017-06-30 2,964 507 -350
2017-03-31 2,927 429 -362

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Scientific Games's earnings are expected to grow significantly at over 20% yearly.
  • Scientific Games's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TJW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Scientific Games Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TJW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.42 1.42 1.42 1.00
2021-12-31 1.22 2.31 0.03 8.00
2020-12-31 0.65 1.82 -1.27 9.00
2020-04-05
DB:TJW Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.40
2019-09-30 1.29
2019-06-30 -2.66
2019-03-31 -1.90
2018-12-31 -3.87
2018-09-30 -6.64
2018-06-30 -3.44
2018-03-31 -3.84
2017-12-31 -2.72
2017-09-30 -3.50
2017-06-30 -3.97
2017-03-31 -4.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Scientific Games will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Scientific Games's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Scientific Games has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Scientific Games performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Scientific Games's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Scientific Games does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Scientific Games's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Scientific Games's 1-year growth to the DE Hospitality industry average as it is not currently profitable.
Earnings and Revenue History
Scientific Games's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Scientific Games Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TJW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,400.00 -130.00 707.00 188.00
2019-09-30 3,422.20 119.60 716.90 191.30
2019-06-30 3,388.20 -245.40 710.90 194.30
2019-03-31 3,388.20 -174.40 710.90 197.30
2018-12-31 3,363.00 -352.00 697.00 202.00
2018-09-30 3,301.00 -602.10 682.70 198.80
2018-06-30 3,248.90 -310.40 672.50 196.60
2018-03-31 3,170.20 -343.50 644.40 195.70
2017-12-31 3,084.00 -242.00 613.00 184.00
2017-09-30 3,012.80 -310.00 582.40 187.70
2017-06-30 2,963.90 -349.60 576.40 193.80
2017-03-31 2,926.80 -362.20 582.90 197.40
2016-12-31 2,883.40 -353.70 584.50 204.80
2016-09-30 2,868.20 -370.40 582.50 198.50
2016-06-30 2,819.80 -1,349.70 566.50 190.50
2016-03-31 2,782.10 -1,400.20 555.00 186.80
2015-12-31 2,758.80 -1,394.30 567.70 183.90
2015-09-30 2,587.60 -1,313.90 541.30 180.80
2015-06-30 2,331.60 -305.50 500.10 161.20
2015-03-31 2,057.00 -275.70 454.40 138.00
2014-12-31 1,786.40 -234.30 457.10 117.00
2014-09-30 1,622.50 -187.70 365.60 98.30
2014-06-30 1,441.30 -118.30 315.60 73.40
2014-03-31 1,259.40 -58.30 265.10 50.00
2013-12-31 1,090.90 -25.60 222.10 26.00
2013-09-30 935.76 -37.40 181.57 11.30
2013-06-30 926.00 -61.56 181.14 9.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Scientific Games has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Scientific Games used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • It is difficult to establish if Scientific Games improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Scientific Games's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Scientific Games has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Scientific Games's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Scientific Games's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Scientific Games is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Scientific Games's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Scientific Games's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Scientific Games has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Scientific Games Company Filings, last reported 3 months ago.

DB:TJW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -2,108.00 8,739.00 313.00
2019-09-30 -2,125.00 8,787.00 363.00
2019-06-30 -2,118.00 8,863.00 369.00
2019-03-31 -2,423.00 9,987.00 1,213.00
2018-12-31 -2,463.00 9,033.00 168.00
2018-09-30 -2,618.60 8,781.80 113.50
2018-06-30 -2,268.40 8,893.90 118.60
2018-03-31 -2,196.10 8,865.20 109.90
2017-12-31 -2,027.00 8,776.60 788.80
2017-09-30 -1,976.50 8,090.50 196.40
2017-06-30 -1,998.10 8,105.30 198.20
2017-03-31 -1,995.20 8,112.30 131.90
2016-12-31 -1,935.70 8,074.40 115.10
2016-09-30 -1,750.00 8,093.30 120.90
2016-06-30 -1,666.90 8,129.10 101.40
2016-03-31 -1,583.90 8,200.10 145.70
2015-12-31 -1,495.50 8,218.90 128.70
2015-09-30 -980.80 8,416.90 102.10
2015-06-30 -260.10 8,489.30 129.10
2015-03-31 -189.40 8,512.60 151.20
2014-12-31 3.90 8,322.40 171.80
2014-09-30 105.70 3,215.00 132.90
2014-06-30 225.90 3,231.60 89.80
2014-03-31 285.90 3,204.30 169.10
2013-12-31 375.00 3,194.50 153.70
2013-09-30 354.64 1,461.60 73.46
2013-06-30 309.64 1,459.39 78.08
  • Scientific Games has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Scientific Games's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Scientific Games has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Scientific Games has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -23.2% per year.
X
Financial health checks
We assess Scientific Games's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Scientific Games has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Scientific Games's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Scientific Games dividends. Estimated to be 0% next year.
If you bought €2,000 of Scientific Games shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Scientific Games's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Scientific Games's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TJW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 11.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TJW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-05

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Scientific Games has not reported any payouts.
  • Unable to verify if Scientific Games's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Scientific Games's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Scientific Games has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Scientific Games's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Scientific Games's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Scientific Games afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Scientific Games has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Scientific Games's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barry Cottle
COMPENSATION $23,616,423
AGE 58
TENURE AS CEO 1.8 years
CEO Bio

Mr. Barry L. Cottle has been the Chief Executive Officer, President and Director of Scientific Games Corp since June 1, 2018. Mr. Cottle is Executive Chairman of SciPlay Corporation since April 2019. Mr. Cottle served as the Chief Executive of Interactive at Scientific Games Corporation since joining in August 2015 until June 1, 2018. He leads the strategy and growth plans of the Interactive group. Before Scientific Games, he served as Vice Chairman of Technology at Deluxe Entertainment Services Group Inc., since February 19, 2015. He served as Senior Vice President for technology at MacAndrews & Forbes Incorporated. He helped drive digital innovation including Deluxe’s launch of Virtual Reality in June 2015. He served as the Chief Revenue Officer of Zynga, Inc., since November 13, 2012 and its Executive Vice President of Business and Corporate Development from January 2012 to November 13, 2012. He led corporate and business development, strategic partnerships, distribution, marketing and advertising. Additionally, Mr. Cottle took over the rapidly declining casino division in 2013 and turned it around to grow revenues and market share and establish Zynga as a leader in the social and mobile space. He served as an Executive Vice President of EA Interactive at Electronic Arts Inc. since August 4, 2011. He grew EA’s mobile and online game division from approximately $140 million in yearly revenues to more than $600 million to become the worldwide market leader. During his tenure, he transitioned EA Mobile from a U.S.-centric feature phone business to a global free-play leader across smartphones and Facebook. He served as Senior Vice President and General Manager, EA Mobile of Electronic Arts Inc., since August 8, 2007. Mr. Cottle served as Chief Executive Officer of MobileAria Inc. He co-founded Quickoffice, Inc., in 1994 and served as its Chief Executive Officer until October 2007. He co-founded Mobile Digital Media Inc., in 2002 and served as its Chief Executive Officer. He served as the Chief Internet Officer and Chief Operating Officer of Content and Access at Palm, Inc. for almost three years. He served as Chief Operating Officer and Chief Internet Officer for the Mobile Content and Wireless Service business of Palm Computing Inc. During his tenure at Palm Computing, Mr. Cottle managed Palm.net and set its worldwide strategic direction for mobile content and services. He worked at Hallmark Cards, Andersen Consulting, Apple Computer and Trammell Crow. He served senior executive positions at Palm Computing Inc. and The Walt Disney Company. He served for nine years with The Walt Disney Company, where he served as a Senior Vice President of Marketing at Disney TeleVentures. He led Disney’s efforts in content development and distribution through these innovative channels. He served as a Director of Quickoffice, Inc., Salesnet Inc., and Mobile Digital Media Inc. He served as a Director of MobileAria, Inc. Mr. Cottle holds a B.S. Degree in Information Services and Mathematics with honors from Southwest Missouri and an M.B.A. with honors from the Kellogg School of Management at Northwestern University.

CEO Compensation
  • Insufficient data for Barry to compare compensation growth.
  • Barry's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Scientific Games management team in years:

2.6
Average Tenure
60
Average Age
  • The tenure for the Scientific Games management team is about average.
Management Team

Ronald Perelman

TITLE
Executive Chairman of the Board
COMPENSATION
$235K
AGE
76
TENURE
0.8 yrs

Barry Cottle

TITLE
CEO, President & Director
COMPENSATION
$24M
AGE
58
TENURE
1.8 yrs

Michael Quartieri

TITLE
Executive VP
COMPENSATION
$1M
AGE
51
TENURE
4.1 yrs

Michael Winterscheidt

TITLE
Senior VP & Chief Accounting Officer
COMPENSATION
$793K
AGE
48
TENURE
3.2 yrs

Jim Kennedy

TITLE
Chairman of Lottery
COMPENSATION
$2M
AGE
62
TENURE
15.3 yrs

Kevin Sheehan

TITLE
Senior Advisor
COMPENSATION
$8M
AGE
65
TENURE
1.8 yrs

Bobby Shore

TITLE
Senior Director of Investor Relations & Corporate Finance

Bill Pfund

TITLE
Vice President of Investor Relations
AGE
65
TENURE
6 yrs

Trent Kruse

TITLE
Senior Vice President of Investor Relations & Finance

Stephen Richardson

TITLE
Senior VP & Chief Compliance Officer
AGE
51
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Scientific Games board of directors in years:

7.3
Average Tenure
66
Average Age
  • The tenure for the Scientific Games board of directors is about average.
Board of Directors

Barry Cottle

TITLE
CEO, President & Director
COMPENSATION
$24M
AGE
58
TENURE
1.8 yrs

Peter Cohen

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
$270K
AGE
72
TENURE
15.6 yrs

Ronald Perelman

TITLE
Executive Chairman of the Board
COMPENSATION
$235K
AGE
76
TENURE
6.4 yrs

Dick Haddrill

TITLE
Vice Chairman of the Board
COMPENSATION
$2M
AGE
66
TENURE
5.3 yrs

Mike Regan

TITLE
Independent Director
COMPENSATION
$280K
AGE
76
TENURE
14.2 yrs

Frances Fragos Townsend

TITLE
Independent Director
COMPENSATION
$262K
AGE
57
TENURE
10 yrs

Barry Schwartz

TITLE
Independent Director
COMPENSATION
$263K
AGE
70
TENURE
16.3 yrs

Paul Meister

TITLE
Independent Director
COMPENSATION
$245K
AGE
66
TENURE
8.1 yrs

Kneeland Youngblood

TITLE
Independent Director
COMPENSATION
$230K
AGE
64
TENURE
1.7 yrs

Jack Markell

TITLE
Independent Director
AGE
58
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Scientific Games individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Mar 20 Buy Barry Cottle Individual 10. Mar 20 10. Mar 20 5,000 €9.13 €45,651
01. Oct 19 Buy MacAndrews & Forbes Holdings, Inc. Company 30. Sep 19 30. Sep 19 50,000 €18.73 €936,359
27. Sep 19 Buy MacAndrews & Forbes Holdings, Inc. Company 27. Sep 19 27. Sep 19 100,000 €19.03 €1,902,612
23. Sep 19 Buy MacAndrews & Forbes Holdings, Inc. Company 20. Sep 19 20. Sep 19 100,000 €20.89 €2,088,652
23. Sep 19 Buy Ronald Perelman Individual 17. Jun 19 18. Sep 19 405,000 €20.26 €7,558,276
19. Sep 19 Buy MacAndrews & Forbes Holdings, Inc. Company 18. Sep 19 18. Sep 19 100,000 €20.26 €2,025,640
17. Sep 19 Sell Richard Haddrill Individual 13. Sep 19 13. Sep 19 -45,681 €21.62 €-987,524
24. Jun 19 Buy MacAndrews & Forbes Holdings, Inc. Company 20. Jun 19 20. Jun 19 75,000 €17.93 €1,344,470
19. Jun 19 Buy MacAndrews & Forbes Holdings, Inc. Company 19. Jun 19 19. Jun 19 120,000 €18.09 €2,170,624
18. Jun 19 Buy MacAndrews & Forbes Holdings, Inc. Company 17. Jun 19 17. Jun 19 110,000 €17.56 €1,932,001
X
Management checks
We assess Scientific Games's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Scientific Games has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Scientific Games Corporation develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company’s Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; slot, casino, and table-management systems; table products, including shufflers; and perpetual licenses to proprietary table games. It also leases gaming machines; provides gaming operations and licensing arrangements; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services of customer casino management systems. The company’s Lottery segment designs, prints, and sells instant lottery products; designs and manufactures instant games tickets; offers instant products planning, monitoring, management system, warehousing, inventory management, distribution, marketing, and game support functions; supplies player loyalty programs, merchandising services, and interactive marketing campaigns; and sublicenses brands for lottery products and lottery-related promotional products. It also provides software, hardware, and related services for lottery operations; and lottery systems software maintenance and support services. The company’s SciPlay segment sells virtual coins, chips, or bingo cards; and third-party branded games and original content through mobile and web platforms. Its Digital segment provides digital gaming and sports wagering solutions and services, including digital RMG and sports wagering solutions, distribution platforms, content, products, and services; software design, development, licensing, maintenance, and support services; Open Platform Systems; and content aggregation platforms. The company was founded in 1984 and is headquartered in Las Vegas, Nevada.

Details
Name: Scientific Games Corporation
TJW
Exchange: DB
Founded: 1984
$510,741,455
93,870,715
Website: http://www.scientificgames.com
Address: Scientific Games Corporation
6601 Bermuda Road,
Las Vegas,
Nevada, 89119,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SGMS Class A Common Stock Nasdaq Global Select US USD 23. Aug 1984
DB TJW Class A Common Stock Deutsche Boerse AG DE EUR 23. Aug 1984
BRSE TJW Class A Common Stock Berne Stock Exchange CH CHF 23. Aug 1984
Number of employees
Current staff
Staff numbers
9,800
Scientific Games employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 20:30
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/18
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.